This CNBC clip comes from the middle of the day when the market thought Washington had worked out a bailout deal for the auto makers. Beginning at 4:30 into the clip, you hear John Harwood interrupt and announce that he’s just received an email from the House side saying the Senate deal is a “non-starter.” Right after you hear one of the anchors say, “. . . . and the market goes down.”
Let’s step back from the debate and ask a simple question: who is sending this message to Harwood? A staffer? At whose direction?
And why is the House negotiating with the Senate through CNBC?
The spike in Treasuries this afternoon speaks to the level of fear out there. The fear is a direct product of this kind of bizarre and irresponsible behavior. Which is even more stunning because we seem to be going into a step-by-step repeat of the TARP fiasco where Congress destroyed is credibility without restoring confidence.